Daily Real Estate News September 9, 2008

Why This Autumn is a Great Time to Buy

This fall could be a particularly great time for first-time or buyers
long out of the market to jump in, say a variety of real estate professionals.

Here are the reasons why:

Prices are probably as low as they are going to go as the market stabilizes,
thanks to the government takeover of Freddie Mac and Fannie Mae.
Interest rates are likely to decline as Freddie and Fannie get government help.
The Federal Housing Administration recently boosted its loan
limits to $729,750 in expensive areas. It’s going to take some of that back
come Jan. 1, when the loan limit will shrink to $625,500.
The FHA allows down payments of as little as 3 percent, but that
will rise to 3.5 percent as of Oct. 1.
People scraping dollars together for a down payment should try to
set their closing for the end of this month.
The tax credit will shave $7,500 off a first-time buyer’s federal tax
bill due April 15. Buyers who don’t owe tax, will get the money
as a refund.The government’s definition of a first-time buyer
is anyone who hasn’t owned a home in the last three years.

Source: The Washington Post, Elizabeth Razzi (09/07/08)

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